Published on Sunday May 29 2011 (AEST)-Australia
Handphones riskier than Lynas ore, says Pahang MB
“There is nothing really...handphones have more radiation,” the Pahang mentri besar said during an MCA retreat here today.
Adnan accused Pakatan Rakyat (PR) lawmakers, specifically PKR’s, of “creating fears” about safety issues and blowing the matter out of proportion.
“PKR is smart, they are using the nuclear issue in Japan, radiation... of course people are scared,” he said.
Adnan added that the federal government should have “nipped the problem in the bud” when the issue first arose, by countering PKR’s attacks against the plant’s construction.
“In Lynas, we made a mistake... to the point where MCA ever tried taking over the role of the opposition,” said Adnan.
The Pahang MB, however, refused to add anything further during a press conference later.
“I don’t want to prejudge anything... I advise that you do the same, don’t write about Lynas, let the independent panel evaluate,” he told reporters.
Health Minister Datuk Seri Dr Liow Tiong Lai, who was also present during the press conference, repeatedly stated that the safety of Malaysians was of paramount importance, and that the Najib administration would not “compromise the safety of its people.”
Green groups here and in Australia have lobbied their respective governments to scupper the project ahead of Lynas Advanced Materials Plant LAMP’s September start date, citing the company’s opaque plans on waste storage and transport management between the Mount Weld mine in Western Australia and the Gebeng refinery.
The Malaysian Medical Association (MMA) has expressed “grave concern” that waste products could wreak harm on those living nearby.
The association, representing the country’s 13,000 doctors, stressed that the possible health risks presented by radiation from “extremely toxic” thorium outweighed the economic benefits from the project.
Lynas is among the world’s biggest suppliers of rare earths, a group of minerals vital in the manufacture of high technology goods that are ecologically friendly but create toxic by-products in the process.
The RM700 million LAMP is expected to be the world’s largest and most sophisticated upon completion.
Chinese Rare Earth Metals Prices Soar
The implications could be far-reaching. Although annual consumption of the metals is small relative to that of other commodities, rare earths are found in everything from fluorescent lights to wind turbines. They are very difficult, if not impossible, to substitute.
Industrial buyers are in shock after witnessing the price of rare earths such as cerium oxide jumping 475 per cent in just five months, amid falling supplies.
“I’ve never seen anything like it,” says one US-based purchaser of rare earths. “People are trying to wriggle out of using rare earths in any way they can, whether by developing new products or finding substitutes.”
Following that de facto embargo, governments around the world, particularly Washington and Tokyo, have stepped up their efforts to develop other sources of supply. But those efforts will take years. In the meantime, Beijing has tightened regulations on its own polluting rare earths sector as part of a programme to clean up Chinese mines. Many expect China’s rare earth production to fall as a result.
As China cuts further export quotas – this year’s overseas sales licence is 4.5 per cent lower on an annualised basis than last year’s and more than 40 per cent below the 2009 quota – global demand for the metals has been growing.
Beijing has also clamped down on smuggling, which at one point accounted for about one-fifth of total sales, further squeezing the global market.
Statistics collected in Hong Kong show exports of rare earth metals have halved over the past year to reach just 1,819 tonnes last month. At the same time, the value of exports has soared to more than $121,000 per tonne, a 10-fold increase from a year ago.
Traders say that Chinese customs officials are policing exports and require that sales contracts match an internal price list, known by some as the “secret price”. They say sales of rare earths are quicker, but that offers are withdrawn more often because of rapid price moves.
The cost of neodymium oxide, which is used in permanent magnets and wind turbines, has risen more than threefold this year, hitting Rmb850,000 per tonne, according to Antaike, the Beijing-based commodities consultancy.
Dysprosium oxide, used in lasers, has jumped 338 per cent since January to Rmb4,700 a kilogramme, an all-time record. Even prices for the most common rare earths, such as lanthanum, used in hybrid car batteries, have risen sharply.
Users have been scrambling to find alternatives. Hybrid carmakers are accelerating the development of lithium ion batteries. Toyota, for example, is developing an induction motor for electric cars that uses fewer rare earth magnets.
Chemical companies, also big consumers of rare earths, have been developing alternatives. Albemarle, the US-based chemical company, recently introduced a new line of low rare earth fuel catalysts, citing a 1,500 per cent increase in the cost of lanthanum in the last 12 months.
With China planning to reduce output, manufacturers are braced for a sustained period of high prices. In February, Premier Wen Jiabao outlined a “five-year plan” for rare earths that included increased state oversight, raising environmental standards, a crackdown on smuggling, the closure of illegal mines and consolidation of rare earth producers. A new environmental code for rare earths mines will come into effect in October and Beijing has halted issuing new licences for the mines.
Yin Jianhua, rare earth analyst at Antaike, says: “Over the next five years China will probably continue reducing exports.”
This shift in policy follows similar policy changes on other commodities. Beijing has launched an industry-wide “consolidation” process for coal over the last two years, which has dampened output and forced China, once an exporter, to import large amounts of coal, pushing up prices.
China has also purged illegal and environmentally damaging mining of antimony, a metal used in fireproofing goods. The crackdown on antimony has pushed the cost of the commodity to a record high.
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